World tin demand projected to increase
JAKARTA (JP): The London-based International Tin Research Institute Ltd. (ITRI) estimates that world tin consumption will increase by 20,000 tons in 1997 and 30,000 tons 1998.
The rise is predicted owing to the increased usage of tin expected in the beverage industry and of lead-free solders in the electronics industry.
"The usage of tin as an alternative in certain products has shown significant progress in the last few years," ITRI's managing director, Rod Bedder, said yesterday.
He said that the world consumption of tin reached 180,000 tons last year.
"The decline in consumption of tin has now been reversed and for the first time in the 1990s, the market share of steel beverage cans in Europe will overtake that of aluminum," he added.
He said that the use of tin could reduce the cost of beverage can production by up to 15 percent.
Bedder particularly noted that the growth of canned foods in China alone is estimated to require an additional 5,000 tons of tin per annum by the year 2000 to meet the needs of the existing tin plate manufacturing capacity.
ITRI's supervisory council, which held its third meeting in Jakarta yesterday, said that in the efforts to re-introduce the tin plate beverage can into North America, it has called six major U.S. steel producers to discuss technology transfer arrangements with the big three European steel producers.
"This initiative is hoped to bring results in the next six to 12 months," he said.
Bedder also said that a worldwide survey of solder suppliers has shown more than 30 lead-free alloy alternatives are now available to meet the need of every solder application.
He said that a number of North American and Japanese electronic multinationals are believed to be on the verge of a first step into lead-free consumer products.
"All the lead-free alternatives under investigation by ITRI contain more than 80 percent tin and this represents a potential increase in world tin consumption of up to 30,000 tons per annum," he said.
He said that ITRI has now commissioned the first commercial quantities of pure tin shot for sampling by cartridge manufacturers, which shows that the material is a perfect alternative to lead.
Bedder said that with the consumption of lead for shot estimated at more than 50,000 tons per annum, there will be a huge potential market for the non-toxic tin alternative to lead.
"On the supply side, we estimated that the global production will rise by 15,000 to 20,000 tons in the next few years," said Peter Jackson, a director of PT Koba Tin, who is also a member of ITRI's supervisory council.
The world supply was estimated at 160,000 tons last year.
Jackson said that in the next 18 months to 24 months some tin mining companies from Indonesia, Brazil and Australia will commence commercial production.
"Therefore, we hope that the supply will go in line with the increase of the demand," he said.
Bedder added that the tin prices on the global market are likely to remain stable in the next two years.
ITRI, which has conducted research and development into the uses of tin for the past 70 years, was privatized in January last year as a result of a change in its funding mechanism. Since then it has no longer been funded by member countries, but by tin mining companies.
Yesterday's meeting was attended by major tin producing companies, including PT Tambang Timah and PT Koba Tin of Indonesia, Norminco and RGC Limited of Australia, Escoy and Malaysia Melting of Malaysia, Metallo-Chimique of Belgium, Minsur S.A. of Peru, Somincor of Portugal and Solo Industries of the United Arab Emirates. (08)